Computer Literacy Inc. –

SUNNYVALE, Calif. – Computer Literacy Inc., an online retailer of information resources for technical professionals, went public November 20, offering 3 million shares at $10 apiece. Stocks priced above the company’s $7 to $9 filing range.

The underwriters for the initial public offering, which left 10.6 million shares of common stock outstanding, were NationsBanc Montgomery Securities L.L.C., Piper Jaffray Inc. and Needham & Co. Inc.

Venture investors were Sierra Ventures V, L.P., Trinity Ventures V, L.P., Needham Capital Partners II, L.P., Vulcan Ventures Inc., APV Technology Partners I and II, L.P. and APV Technology Partners U.S., L.P. There were no selling shareholders.

Computer Literacy, which was incorporated in 1994 and started offering its products online in 1996, sells technical books, product manuals, research reports and training materials. Its Web site features a searchable catalog, book reviews, recommendations, author profiles and bibliographic data. The company also operates three retail stores.

The $27.9 million raised by the IPO will be used for working capital and general corporate purposes. Capital also will be used to expand direct sales, telesales and marketing operations, as well as systems and infrastructure development activities.

Computer Literacy lost $567,000 in the year ended January 31, 1997, and $3.19 million last year.

Peter Bodinem, a partner at APV Technology Partners, has been a company director since May 1998. Tod Francis, a general partner at Trinity Ventures, and Peter Wendell and David Schwab, both general partners at Sierra Ventures, joined the board in September 1996.

Computer literacy – Selected Financial

(in thousands, except per shre data)

Year Ended January 31, Six Months Ended July 31

1996 1997 1998 1997 1998

Net revenue 180 10,948 2,883 9,209

Net income (loss) -94 -567 -3,190 -986 -3,637

Net income (loss) per share

-0.1 -0.38 -2.11 -0.66 -2.37